Gulf Industries issues a $610,000, 7%, 15-year mortgage note on January 1, 2020. Terms provide for annual installment payments of $65,844, exclusive of taxes and insurance. In what year will Gulf's principal balance be less than half of the issue amount? Assume the first payment is made on December 31, 2020.

Answer rating: 100% (QA)

To determine the year in which Gulf Industries principal balance will be less than half of the issue amount we need to calculate the remaining principal balance at the end of each year until it reache... View the full answer